Global private equity firm CVC, through its CVC Diversified Infrastructure Fund (CVC DIF), has entered into a strategic partnership with National Central Cooling Company PJSC (Tabreed) to acquire PAL Cooling Holding from Multiply Group, with the transaction implying an equity valuation of approximately AED3.8bn ($1.03bn), according to a report by Reuters.
The acquisition, announced in a joint statement by CVC DIF, Tabreed, and Multiply Group, remains subject to customary regulatory approvals.
This deal underscores the growing appetite among international infrastructure investors for energy-efficient and sustainability-linked assets in the Gulf region, as countries increasingly seek to diversify their economies away from hydrocarbons.
PAL Cooling Holding, headquartered in Abu Dhabi, operates a portfolio of district cooling assets across the UAE.
District cooling – delivering chilled water through insulated pipes to provide air conditioning for commercial, industrial, and residential buildings – offers a lower-carbon, cost-efficient alternative to conventional cooling methods. The model is particularly relevant in the UAE, where summer temperatures routinely exceed 50°C.
Advisors on the transaction included Standard Chartered and Clifford Chance for Multiply Group. Tabreed and CVC DIF were advised by Citi, Synergy Consulting, and White & Case.
The deal follows earlier reports by Reuters on 30 May that CVC and Tabreed were in exclusive negotiations for the acquisition, reflecting heightened investor interest in utility-scale infrastructure across the MENA region.
